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Aston Martin has blamed an earnings downgrade to Donald Trump's tariffs, as it urging the UK government for more proactive support.

This manufacturer, which builds its vehicles in Warwickshire and south Wales, revised its earnings forecast on Monday, marking the another downgrade this year. The firm expects deeper losses than the previously projected £110m shortfall.

Seeking Government Backing

Aston Martin voiced concerns with the UK government, informing investors that despite having communicated with representatives from both the UK and US, it had productive talks with the US administration but required more proactive support from British officials.

The company called on British authorities to safeguard the needs of small-volume manufacturers like Aston Martin, which create thousands of jobs and contribute to regional finances and the broader UK automotive supply chain.

Global Trade Impact

Trump has shaken the global economy with a trade war this year, heavily impacting the automotive industry through the imposition of a 25 percent duty on 3rd April, on top of an existing 2.5% levy.

During May, the US president and Keir Starmer reached a agreement to limit duties on one hundred thousand UK-built vehicles per year to 10%. This rate took effect on 30th June, aligning with the last day of Aston Martin's Q2.

Trade Deal Concerns

Nonetheless, Aston Martin criticised the trade deal, stating that the implementation of a US tariff quota mechanism introduces additional complications and limits the group's capacity to precisely predict earnings for this financial year end and possibly each quarter starting in 2026.

Other Factors

The carmaker also pointed to weaker demand partially because of increased potential for supply chain pressures, especially after a recent cyber incident at a leading British car producer.

The British car industry has been rattled this year by a cyber-attack on Jaguar Land Rover, which led to a manufacturing halt.

Market Reaction

Stock in Aston Martin, listed on the London Stock Exchange, fell by more than 11% as trading opened on Monday morning before partially rebounding to be 7 percent lower.

The group sold one thousand four hundred thirty vehicles in its Q3, falling short of earlier projections of being roughly equal to the one thousand six hundred forty-one vehicles sold in the same period the previous year.

Future Plans

Decline in sales coincides with the manufacturer gears up to release its flagship hypercar, a rear-engine supercar costing around £743,000, which it expects will boost profits. Deliveries of the vehicle are scheduled to begin in the last quarter of its fiscal year, although a forecast of about 150 units in those three months was below previous expectations, due to engineering delays.

Aston Martin, famous for its roles in the 007 movie series, has started a evaluation of its upcoming expenditure and spending plans, which it indicated would likely lead to reduced spending in engineering and development versus previous guidance of about £2bn between its 2025 and 2029 financial years.

The company also informed investors that it does not anticipate to generate positive free cash flow for the latter six months of its present fiscal year.

UK authorities was contacted for comment.